Palo Alto Networks has revealed plans to acquire Chronosphere, a cloud observability platform, for $3.35 billion in cash and equity. This acquisition is a strategic shift for Palo Alto as it extends its reach into adjacent infrastructure monitoring, a necessity as organizations face the complexities of AI workloads and cloud-native applications. CEO Nikesh Arora emphasized that modern AI data centers require constant uptime and real-time observability, which Chronosphere is poised to provide. Moreover, Chronosphere has reported impressive growth, exceeding $160 million in annual recurring revenue as of September 2025, indicating its rapid adoption in the industry.
The acquisition is part of a broader trend in the technology sector where cybersecurity companies are acquiring AI-focused firms, following other substantial deals in 2025. Palo Alto intends to integrate Chronosphere with its AgentiX platform, aiming to redefine observability through autonomous remediation. CEO Martin Mao expressed enthusiasm about the partnership, highlighting the potential to combine enhanced observability solutions with leading security measures. This deal is expected to close in 2026, further illustrating Palo Alto Networks’ commitment to leading innovation at the intersection of security and observability.
👉 Pročitaj original: CyberScoop
